10 July 2001, 18:02  U.S. May wholesale inventories up 0.2 pct vs 0.1 rise in April

WASHINGTON (AFX) - Wholesale inventories rose 0.2 pct in May, the Commerce Department said. This is the largest increase since Nov 2000. The rise in inventories was slightly larger than expected. The consensus forecast of Wall Street economists was for a 0.1 pct rise in inventories in May. In April, wholesale inventories rose a revised 0.1 pct, down from the initial estimate of a 0.3 pct rise. Year-on-year, wholesale inventories were up 2.3 pct. Sales at the wholesale level fell 0.1 pct in May, following a 0.1 pct rise the previous month. The inventory-to-sales ratio, an indicator of how well stocks are meeting demand, was 1.32 in May, up from 1.31 in April. This is the highest ratio since April 1999 and nearing the all time high of 1.35, set in Dec 1993. Durable good inventories, such as automobiles and furniture, fell 0.9 pct in May, after falling 0.4 pct in April. Automobile inventories fell 1.9 pct in May after a 1.0 pct fall in April. Inventories of nondurable goods, disposable products that last less than three years, rose 2.0 pct in May after a 1.0 pct rise in April. Petroleum stocks were unchanged in May after a 2.0 pct fall in the previous month.

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